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SunCar Technology Group (NAS:SDA) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
SunCar Technology Group Operating Margin % Related Terms
SunCar Technology Group Operating Margin % Historical Data
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The historical data trend for SunCar Technology Group's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SDA vs NXB, CRMT, UCAR: Operating Margin % Comparison
For the Auto & Truck Dealerships subindustry, SunCar Technology Group's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
SunCar Technology Group Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, SunCar Technology Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where SunCar Technology Group's Operating Margin % falls into.
SunCar Technology Group Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
SunCar Technology Group's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SunCar Technology Group (SDA) has a Operating Margin % of 2.30% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on SunCar Technology Group and its competitors. According to the industry distribution chart, SunCar Technology Group ranks #972 out of 1319 companies in the Vehicles & Parts industry, placing it in the top 73.7%.
Is SunCar Technology Group's Operating Margin % too high?
SunCar Technology Group's current Operating Margin % is 2.30%. The Vehicles & Parts industry median Operating Margin % is 4.89. SunCar Technology Group's value of 2.30% is 53% below this industry median. Based on the distribution chart, SunCar Technology Group ranks #972 out of 1319 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, SunCar Technology Group has a GF Score™ of 50/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does SunCar Technology Group's Operating Margin % compare to NXB and CRMT?
According to the Vehicles & Parts industry distribution chart, SunCar Technology Group ranks #972 out of 1319 companies for Operating Margin %. This places SunCar Technology Group in the lower half of its industry. The industry median Operating Margin % is 4.89. SunCar Technology Group's value of 2.30% is 53% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.89, based on 1,319 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SunCar Technology Group's current Operating Margin % of 2.30% is 53% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on SunCar Technology Group and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SunCar Technology Group's current Operating Margin % is 2.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SunCar Technology Group stock overvalued right now?
Based on GuruFocus' analysis, SunCar Technology Group (SDA) is currently considered Possible Value Trap. The stock's GF Value™ is $8.78, compared to a current price of $0.85 — trading 90.3% below its estimated fair value. The current Operating Margin % is 2.30% and 53% below the Vehicles & Parts industry median of 4.89. SunCar Technology Group's overall GF Score™ is 50/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For SunCar Technology Group (SDA), the current Operating Margin % is 2.30% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is SunCar Technology Group (SDA) Overvalued in 2026?
Based on GuruFocus' analysis, SunCar Technology Group stock appears to be undervalued.
The current stock price of $0.85 is trading 90.3% below its estimated GF Value™ of $8.78.
GuruFocus considers SunCar Technology Group to be Possible Value Trap.
Key valuation signals for SDA:
Operating Margin %: 2.30%
GF Value™: $8.78 vs. price of $0.85 (90.3% below fair value)
Industry Position: 53% below the Vehicles & Parts median (#972 of 1319)
No single metric tells the full story. See the SDA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SunCar Technology Group Inc operates digital automotive aftersales market service platform and vehicle insurance technology platform. It develops and operates online platforms that connect drivers in China with a range of aftermarket automotive services and insurance coverage options from a nationwide network of service providers. These comprehensive digital systems are built on SunCar's multi-tenant, cloud-based platform. Revenues from its continuing operations are mainly generated from providing auto eInsurance services, technology services, and auto services.
50GF Score
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